E-commerce is booming in UAE and Saudi with an estimate of it being worth $48.6 billion in 2022, up nearly $20 billion from 2018. This projected growth is down a combination of factors, listed below…
Merging Key Players
It is no secret that a huge purchase happened last year. Amazon acquired Souq for reportedly $586 million. Making it one of the most formidable forces on the e-commerce scene.
More recently we have also seen Noon.com sign an agreement with eBay to enable consumers to purchase products listed on eBay in the US and other countries globally.
DFZC have released more initiatives to help make Dubai an attractive option for free zone e-commerce companies. Among the benefits, will be the expansion of air cargo traffic and addressing the rise in demand and supply of logistics services. DFZC Secretary-General Dr. Mohammed Al Zarooni said “His Highness Sheikh Mohammed bin Rashid Al Maktoum has placed great confidence in us to implement a quality initiative that will stimulate the national economy through e-commerce.”
BMI have stated that “more than 40 per cent of the total population in the Middle East is made up of young adults (20-39 years old) in 2018.” It could be suggested that this has a direct effect on consumer behaviours. Millennials are more influenced by social media and are more likely to adopt modern shopping patterns.
The report by BMI also mentions that the average online spend in the UAE is above $300. Whereas those in France spend $94, and Canadians will spend just $1100 over an entire year, on average. I guess, it’s easy to see why all the major e-commerce players want to trade in UAE.
A recent article from Zawya described the $500 million Mall.Global, a new venture by the Dubai based tech firm set to go live by 2020. It aims to bridge the gap between on-ground and online retail. With over 2,500 brand stores, this platform will offer a personalized experience to enhance the customer’s experience with; Brand Immersion, Virtual Reality, On-Ground AR Cues, Micro-Influencer Reviews, AI & Machine Learning, Cross-Platform Loyalty and multi Cryptocurrency acceptance; to offer what the developer refers to as a True Hybrid experience.
There is no denying that companies cannot avoid the increasing importance of e-commerce!
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